Banks Failing

Detective Krum

Banks Failing

By: Detective Krum

Recent scare tactics by corporate media, some members of Congress, the President, Wall Street insiders claim the recent vote in Congress to reject a bailout will be catastrophic. The question is, How do you define catastrophic? Well, they say, credit will tighten up, companies won’t be able to make payroll, investment portfolios will be cut in half, people will loose their jobs. Some have said their will be no loans. Call your bank and ask them if they approved ANY loans this week. Sure, banks may require more down, in cash. The next question is, So before the federal reserve bank was around, pre 1930s, America was a dismal place, is that right? Well look at the stock market crash of 1929, they’ll say. OK, let’s look at that, what caused the crash? Was it bankers? Was it greed? Was it behind the scenes maneuvering of people like Hoover? Was it a behind the scenes effort to bring in a central bank called the Federal Reserve? I’m not here to debate how America has become a poorer nation because of credit, the federal reserve, debt, loss of gold and silver, loss of jobs through Congress over-regulating, Congress stifling growth in America because they want to bring about a “New World Order” as trumpeted by George Herbert Walker Bush. Isn’t there a Bible saying that says something like, “Like father, like son?” I want to look at current bank failures and show, I have struck a nerve here by showing bank conditions.

You’ll find some links here in a pdf file which you can open and save. Points:

1. JP Morgan Chase and Washington Mutual – Right from the Treasury we get the following, click the link too.

FOR IMMEDIATE RELEASE September 26, 2008 Contact: Robert M. Garsson

OCC Approves Applications for JPMorgan Chase Bank

WASHINGTON — The Office of the Comptroller of the Currency announced today it has approved applications for JPMorgan Chase Bank, National Association, to acquire assets and liabilities from Washington Mutual Bank, and to merge Washington Mutual Bank FSB, into JPMorgan Chase Bank, National Association. The OCC also approved the application of Chase USA, National Association, to acquire from JPMorgan Chase Bank, National Association, certain assets and liabilities that JPMorgan Chase acquired from Washington Mutual Bank.

This means Washington Mutual merges into JP Morgan Chase and Chase USA is acquiring certain assets and {certain} liabilities. The rest of the assets and liabilities Chase USA does not get, JP Morgan Chase Bank keeps. The question here, what assets is Chase USA receiving and what assets is JP Morgan Chase getting?

To get a pdf file from JP Morgan Chase attorney click HERE. Or go to the above link then click the pdf. link.

I have received an email from Bank of Coral Gables and decided not to print the name of the person sending the email. Here is a portion of the text from that email:

“Attention: Detective Krum, I am writing on behalf of Bank of Coral Gables to request you withdraw the reference in your blog post dated 9-28-08 describing the bank as a D or poorly rated bank.The information you are referring to in this posting is dated and more than 18 months old.”{Emphasis by sender}

I never said Bank of Coral Gables was a poorly rated bank. What I said is, “A grade of C or D means yellow flags of caution should be going up to the depositor and they need to be prepared to make a quick move if necessary. “ See Florida Banks Failing.

With the star rating system, I said a four and five star rating is best and equivalent to an (A) or (B) rated bank, again see Florida Banks Failing. I also said a two or three star rating is equivalent to a (C) or (D) rating. I pulled a couple bits of information regarding Bank of Coral Gables and here is what I found:

1. I looked at the bank using government information right here. Their FDIC Certificate # is 58131. From here, you can take a close look at the bank.

2. I looked at the type of bank Bank of Coral Gables is and compared it to a similar bank, Hillsboro Bank FDIC Certificate # 34747

Comparison of Banks

Here is a comparison of Bank of Coral Gables and comparable Hillsboro Bank in Plant City, Florida. A couple things I noticed include:

a. Bank of Coral Gables has more assets but Hillsboro has more insured assets.

b. Bank of Coral Gables has almost one third more in liabilities than Hillsboro Bank.

c. Hillsboro Bank of Plant City, Florida has an  (A-) Rating.

d. Hillsboro Bank shows no past due 30-90 assets where Bank of Coral Gables shows a lot. See Here.

e. There was an enforcement action taken against a bank called The Private Bank of Coral Gables, See Here, but I haven’t checked yet if this bank is affiliated with Bank of Coral Gables yet, so you may want to check that out for yourself.

So given the information provided by government officials and reporting statistics, would you rather do business with Bank of Coral Gables or Hillsboro Bank?

How’s SunTrust Bank?

Detective Krum

Is Your Bank At Risk?

By: Detective Krum

Is your bank at risk of failing? Let me start with a couple points:

You will be able to read this information at: http://v1-p.com/ and on this blog.

Wachovia’s takeover, sale, failure, whatever you want to call it; Why should this bank interest you?

Wachovia showed five major branches:

Houston Texas office was Rated ( C )

Charlotte, NC office was Rated ( C+ )

Wilmington, Delaware office was Rated ( B+ )

Atlanta, Georgia office was Rated ( B- )

LasVegas, Nevada office was Rated ( C- )

Looking at my previous posts regarding Florida banks, Illinois banks, Texas banks, and now Arizona banks, you understand why a bank with an ( A ) or ( B ) rating is desired. Remember, I said banks with a ( C ) or ( D ) rating meant yellow flags should go up. Three of the five Wachovia banks had a ( C ) range rating. SunTrust shows only one bank based in Atlanta, Georgia with a ( C – ) Rating. City National of Taylor, Texas has a ( C – ) Rating.

SunTrust Bank based in Georgia purchased First Priority Bank on August 2, 2008. First Priority failed and SunTrust acquisition was arranged by a regulatory agency. Granted, assets were acquired by SunTrust but it appears, so was some debt. Could this acquired debt through mortgages and maybe other areas be bad news for SunTrust? Time will tell. You can look at a detailed report here.

In looking at SunTrust, I noticed some interesting information. Looking at the picture:

SunTrust Bank

It appears that SunTrust debt has increased considerably. You can get more information regarding SunTrust right here. Why mention this? Wachovia had five banks and SunTrust shows one. Wachovia had 3 of the 5 in a ( C ) rating and two in ( B ) ratings and Wachovia couldn’t make it work. If SunTrust bank has one and it has a ( C- ) rating, how long can SunTrust stay around? SunTrust Bank stock has gone from about 85 down to 38 on 9/29/2008. The following report was from 9/23/2008.

SunTrust Banks (STI) was downgraded today by analysts at Robert W. Baird and the stock is now at $52.68, down $1.20 (-2.22%) on volume of 1,683,014 shares traded. The brokerage reduced its rating on STI to “Neutral” from “Outperform.” Over the last 52 weeks the stock has ranged from a low of $25.60 to a high of $78.76. SunTrust Banks stock has been showing support around $48.31 and resistance in the $61.59 range. Technical indicators for the stock are bearish and S&P gives STI a negative 1 STARS (out of 5) strong sell ranking. This from here.

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